EXHIBIT 10.22


 


ELECTRIC SERVICE AGREEMENT

INTERSTATE POWER AND LIGHT

COMPANY


 


Account No.


 


This agreement
made this 17th day of October, 2007 by and between Interstate Power and Light
Company (a wholly owned subsidiary of Alliant Energy Corporation), an Iowa
corporation headquartered at 200 First Street SE, Cedar Rapids, Iowa,
(hereinafter referred to as “the Company”) and Heron Lake BioEnergy LLC, a
corporation / partnership / proprietorship with principal offices at 91246
390th Ave., Heron Lake, MN 56137, (hereinafter referred to as “the Customer”):


 


That for and in
consideration of the mutual covenants of the parties set forth, and the
performance thereof, it is agreed by and between the said parties as follows:


 


THE PRODUCER
HEREBY AGREES THAT:


 


1.                                      It will furnish to the customer at the
customer’s premises located at 91246 390th Ave. in Heron Lake, Minnesota,
through one point of delivery, alternating current electricity (hereinafter
called “electric service”) for all electrical energy requirements of the
customer.


 


2.                                      The electric service furnished hereunder
will be approximately 69,000 volts, and Three phase, 60 Hertz, and 0 volts,
single phase, 60 Hertz, and metered at 69,000 volts.


 


THE CUSTOMER
HEREBY AGREES THAT:


 


3.                                      It will take from the Company, through
one point of delivery, electric service for all electrical energy requirements
at the premises Identified in Paragraph 1 hereof, and it will observe the rules and
regulations of the Company pertaining to electric service.


 


4.                                      It will not create a demand for electric
service in excess of 6,300 KVA without first notifying the company in writing
of such increase in demand and giving the company sufficient time in which to
provide additional line capacity and other electrical equipment if required.


 


5.                                      It chooses / does not choose (circle one)
interruptible service and it will curtail its demand for electrical service to
N/A KW upon notice by the company.


 


IT IS MUTUALLY
UNDERSTOOD AND AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS THAT:


 


6.                                      The company shall furnish electric
service and the customer shall use and pay for such service in accordance with
the terms and condition of this Agreement and the rates set out in Rate
Schedule 437/438 Bulk Supply Rate attached hereto and made a part hereof, or such
other applicable rate schedule as hereafter at any time may be established for
this class of service within the authority of the Minnesota Public Utilities
Commission or such other regulatory authority having jurisdiction.  Notwithstanding any other provision of this
Agreement, all rates and charges contained in this Agreement may be modified at
any time by a subsequent filing made pursuant to the provisions of Chapter 216B
of the Minnesota Statutes. At the time of signing of this Agreement, the excess
facilities is $0.00; in the event the demand of the customer set forth in
Paragraph 5 above shall be increased, the monthly excess facilities shall be
increased appropriately.


 


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7.                                      It is understood by the customer that, if
at any future time it should elect to accept service under some other available
electric service rate that might prove more advantageous, any expense brought
about by necessary wiring changes on its premises shall be borne by the
customer.


 


8.                                      The electric service furnished under this
Agreement includes only that which is incidental to the customer and no part of
the said electric service shall be sold by the customer to any other parties.


 


9.                                      The company will use due diligence in the
operation and maintenance of its plants and system pertinent to this Agreement
so as to render efficient economic service, but the company shall not be liable
to the customer for any loss or damages suffered by the customer through the
inability of the company to furnish said electric service in accordance with
this Agreement.


 


10.                                The customer shall hold the producer
harmless for any damage to persons or property arising out of the use upon the
customer’s premises of the electric service furnished to it by the company.  Nothing herein contained shall be construed
as relieving the company from any liability to its own employees while upon the
property of the customer in the performance of their duty and by the direction
of the company, or as relieving the company from any liability to the customer
due to the producer’s act of negligence.


 


11.                                This Agreement shall continue for a
period of one (1) year commencing October 1, 2007, and ending October 1,
2008, and thereafter, and may be terminated by either party giving to the other
written notice at least ninety (90) days prior to the date upon which it
desires to terminate the same; whereupon this Agreement shall terminate on said
date.  All contracts, agreements and
understandings between the parties hereto, whether oral or written, pertaining
to the subject matter hereof, heretofore made and entered into, shall hereby
become null and void and of no further force and effect whatsoever.


 


12.                                This Agreement shall be binding upon and
inure to the benefits of the parties hereto, their successors and assigns; but
the assignment of this Agreement by either party shall not relieve such party,
without the written consent of the other, from any of the obligations hereof.


 


IN WITNESS
WHEREOF, the parties hereto have caused these presents to be executed as of the
day and year first above written.


 


	
  Heron Lake Bio
  Energy LLC

  	
   

  	
  Interstate Power
  and Light Company

  
	
  (Customer)

  	
   

  	
  (Company)

  
	
   

  	
   

  	
   

  
	
  By:

  	
   /s/ Robert J. Ferguson

  	
   

  	
  By:

  	
   /s/ Matt Dalney

  
	
   

  	
   

  	
   

  
	
  Title: President

  	
   

  	
  Title: Manager,
  Sales

  
	
  (Officer-Partner-Owner)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
  /s/ Jean M. Ferguson

  	
   

  	
  Attest:

  	
  /s/ Carole Burgin

  
							



 


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GENERAL CONDITIONS


 


1.                                       Equal Opportunity Clause


 


a.                                       The contractor will not discriminate
against any employee or applicant for employment because of race, color,
religion, sex, or nation origin.  The
contractor will take affirmation action to insure that applicants are employed,
and that employees are treated during employment, without regard to their race,
color, religion, sex, or national origin. 
Such action shall include, but not be limited to the following:
Employment, upgrading, demotion, or transfer, recruitment or recruitment
advertising; layoff or termination; rates of pay or other forms of
compensation; and selection for training, including apprenticeship.  The contractor agrees to post in conspicuous
places, available to employees and applicants for employment, notices to be
provided by the contracting officer setting forth the provisions of this
nondiscrimination clause.


 


b.                                      The full text of the Equal Opportunity
Clause is found at 41 CFR 60-1.4 and the provisions thereof are herein
incorporated by reference.


 


c.                                       Contractor further agrees to insert the
foregoing provision in all subcontracts hereunder.


 


2.                                       Affirmative Action for Handicapped
Workers; Affirmative Action for Disabled Veterans and Veterans of the Vietnam
Era.


 


a.                                       The contractor will not discriminate
against any employee or applicant for employment because of physical or mental
handicap, or because he or she is a disabled veteran or veteran of the Vietnam
Era in regard to any position for which the employee or applicant for
employment is qualified.  The contractor
agrees to take affirmative action to employ, advance in employment and
otherwise treat qualified handicapped individuals and qualified disabled
veterans and veterans of the Vietnam Era without discrimination based upon
their physical or mental handicap or their disability or veteran status in all
employment practices such as the following: employment upgrading, demotion or
transfer, recruitment, advertising, layoff or termination, rates of pay or
other forms of compensation, and selection for training, including
apprenticeship.


 


b.                                      The full text of these Affirmative Action
Clauses is found at 41 CFR 60-741.5 and 41 CFR 60-250.4 and the provisions
thereof are herein incorporated by reference.


 


c.                                       Contractor further agrees to insert the
foregoing provisions in all subcontracts hereunder.


 


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  INTERSTATE POWER
  and LIGHT COMPANY

  	
   

  	
   

  
	
  ELECTRIC TARIFF

  	
   

  	
   

  
	
  FILED WITH
  M.P.U.C.

  	
   

  	
  ORIGINAL VOLUME
  NO. 8

  
	
   

  	
   

  	
  SUBSTITUTE
  ELEVENTH REVISED SHEET NO. 23

  
	
   

  	
   

  	
  Cancelling
  SUBSTITUTE TENTH REVISED SHEET NO. 23

  
	
  RATE
  DESIGNATION:

  	
   

  	
   

  	
   

  	
  ON-PEAK 437

  
	
  CLASS OF
  SERVICE:

  	
   

  	
  LARGE POWER AND
  LIGHTING - BULK SUPPLY

  	
   

  	
  OFF-PEAK 438

  
	
  SERVICE AREA:

  	
   

  	
  ALL MINNESOTA
  SERVICE AREA

  	
   

  	
   

  
							



 


Availability: 
Available only for new loads in excess of 4,999 KW served at
transmission voltages.  Existing loads
taken with added new loads such that the total load is in excess of 4,999 KW
may also be served at this rate provided the customer assumes all costs
incurred in revising Company’s system in order to serve the total load at
transmission voltages.  A service
agreement shall be required.


 


Net Rate:


 


Basic Service:    $4.22400 per
day*


 


	
   

  	
   

  	
  Usage from June 1 through Sept. 30

  	
   

  	
  Usage from October 4 through May 31

  	
   

  
	
  Demand Charge:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  On-Peak KW

  	
   

  	
  $10.38 per KW

  	
   

  	
  $6.09 per KW

  	
   

  
	
  Off-Peak KW In excess of On-Peak KW 

  	
   

  	
  $3.98 per KW

  	
   

  	
  $3.98 per KW

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  kWh Charge:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  On-Peak kWh

  	
   

  	
  All
  kWh/day @ 3.644¢ per kWh

  	
   

  	
  All
  kWh/day @ 3.616¢ per kWh

  	
   

  
	
  Off-Peak kWh

  	
   

  	
  All
  kWh/day @ 3.185¢ per kWh

  	
   

  	
  All
  kWh/day @ 3.185¢ per kWh

  	
   

  



 






*For Comparison
Only:  Basic Service $128.48/month


 


	
  Definition of
  Peak Periods:

  	
   

  	
  On-Peak: 7 AM –
  10 PM all non-holiday weekdays.

  
	
   

  	
   

  	
  Off-Peak: All
  other hours (including the holidays of New Year’s, Memorial Day, 

  Independence Day, Labor Day, Thanksgiving Day and Christmas Day).

  



 


Determination of
Demands:  The metered demands shall be measured by a 15
minute interval demand meter and shall include any loss adjustments provided
for in a contract for metering at other than transmission levels.


 


Billing Demand: 
The Monthly Billing Demand shall be the largest On-Peak metered demand
in the 12 months ending with the current billing month but not less than 5,000
kW.


 


Minimum Energy
Purchases:  The minimum number of kWh to be billed in any
billing month shall be that quantity equal to the Billing Demand multiplied by
400.  The minimum kWh billed shall be in
the same ratio as actual metered On-Peak kWh and Off-Peak kWh for the month.


 


Energy Supply Cost
Adjustment:  Rider 1M applicable hereto.


 


Excess Facilities
Charge:  Any facilities required to provide service in
excess of that permitted under this Schedule or the Company’s Electric Service
Standards shall be provided at a monthly amount equal to 1.8% of the Company’s
investment in such facilities.


 


Tax Adjustment: 
Rider MTX applicable hereto.


 


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Reactive Demand Charge. 
A reactive demand charge of 51¢ per kVAr for that portion of the maximum
kVAr registered during the month in excess of 50% of the maximum KW registered
during the month.


 


Minimum Monthly
Bill:  The minimum bill to be rendered for any
billing period will be the demand charges for the Billing Demand for that month
plus the energy charges for 400 kWh per kW of that Billing Demand.


 


Late Payment: 
A late payment charge of one and one-half percent per month shall be
assessed on delinquent amounts in excess of $10.00.  The minimum late payment charge assessed
shall be $1.00.  A bill becomes
delinquent if not paid within 15 days after being rendered.


 


Rules and
Regulations:  Service hereunder is subject to the
provisions of the Company’s Electric Service Standards.


 


 


	
  Date Filed:
  May 16, 2005

  	
  Effective Date:
  May 15, 2006

  
	
   

  	
   

  
	
  By:

  	
  /s/ James P. Maher

  	
   

  
	
   

  	
   James P.
  Maher, Manager – Regulatory Pricing, Iowa & Minnesota

  
	
   

  	
   

  
	
  Docket
  No. E001/GR-05-748

  	
  Order Date:
  May 19, 2006

  
				



 


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  INTERSTATE POWER
  and LIGHT COMPANY

  	
   

  	
   

  
	
  ELECTRIC TARIFF

  	
   

  	
   

  
	
  FILED WITH
  M.P.U.C.

  	
   

  	
  ORIGINAL VOLUME
  NO. 8

  
	
   

  	
   

  	
  SUBSTITUTE
  SIXTEENTH REVISED SHEET NO. 29

  
	
   

  	
   

  	
  Cancelling
  SUBSTITUTE FIFTEENTH REVISED SHEET NO. 29

  
	
  RATE
  DESIGNATION:

  	
   

  	
  ENERGY SUPPLY
  COST ADJUSTMENT

  	
   

  	
  Rider 1M

  
	
  CLASS OF
  SERVICE:

  	
   

  	
  ALL SCHEDULES SO
  DESIGNATED

  	
   

  	
  (Page 1 of
  2)

  
	
  SERVICE AREA:

  	
   

  	
  ALL MINNESOTA
  SERVICE AREA

  	
   

  	
   

  
							



 


There shall be
added to or deducted from the net monthly bill $0.00001 per Kilowatt-hour for
each $0.00001 increase above or decrease below $0.01692 in the energy supply
cost per Kilowatt-hour sales.


 


The energy supply
cost adjustment for each billing month shall be derived from the following
formula:


 


Monthly Adjustment
= Fm/Sm – 0.01692


 


Where:


Fm is total fuel
and purchased economic power cost and Sm is total kWh sales (retail sales plus
firm municipal sales) for the first two months of the three month period
immediately preceding the billing month, all as defined below.


 


a.                                       Fuel and Purchased Economic Power Cost
shall be the sum of the following:


 


1.                                       The fossil and nuclear fuel consumed in
the Company’s generating stations, including the Company’s share of fuel
consumed in jointly owned or leased generating stations, as recorded in
Accounts 151 and 518,


 


2.                                       The total cost of the purchase of
economic power as defined below, if the reserve capacity of the Company is
adequate independent of all other purchases where non-fuel charges are included
in either base period or current period fuel and purchased economic power cost,


 


3.                                       The energy cost associated with any
energy purchased for reasons other than identified in (2) above, when such
energy is purchased on an economic dispatch basis,


 


4.                                       The actual identifiable fossil and
nuclear fuel costs associated with energy purchased for reasons other than
identified in (2) above, less,


 


5.                                       The energy-related revenue applicable to
inter-system sales.


 


b.                                      kWh Sales shall be all kWhs sold
excluding inter-system sales for the same period.


 


c.                                       Economic Power is power or energy
purchased over a period of twelve months or less where the total cost of the
purchase is less than the Company’s total avoided variable costs.


 


	
  Date Filed:
  May 16, 2005

  	
  Effective Date:
  May 15, 2006

  
	
   

  	
   

  
	
  By:

  	
  /s/ James P. Maher

  	
   

  
	
   

  	
   James P.
  Maher, Manager – Regulatory Pricing, Iowa & Minnesota

  
	
   

  	
   

  
	
  Docket
  No. E001/GR-05-748

  	
  Order Date:
  May 19, 2006

  
			



 


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  INTERSTATE POWER
  and LIGHT COMPANY

  	
   

  	
   

  
	
  ELECTRIC TARIFF

  	
   

  	
   

  
	
  FILED WITH
  M.P.U.C.

  	
   

  	
  ORIGINAL VOLUME
  NO. 8

  
	
   

  	
   

  	
  SUBSTITUTE FIFTH
  REVISED SHEET NO. 29.1

  
	
   

  	
   

  	
  Cancelling
  SUBSTITUTE FOURTH RIVISED SHEET NO. 29.1

  
	
  RATE
  DESIGNATION:

  	
   

  	
  ENERGY SUPPLY
  COST ADJUSTMENT

  	
   

  	
  Rider 1M

  
	
  CLASS OF
  SERVICE:

  	
   

  	
  ALL SCHEDULES SO
  DESIGNATED

  	
   

  	
   

  
	
  SERVICE AREA:

  	
   

  	
  ALL MINNESOTA
  SERVICE AREA

  	
   

  	
   

  
							



 


d.                                      Total Cost of the Purchase is all charges
incurred in buying economic power and having such power delivered to the
Company’s system.  The total cost
includes, but is not limited to capacity or reservation charges, energy
charges, adders, and any transmission or wheeling charges associated with the
purchase.


 


e.                                       Total Avoided Variable Cost is all
identified and documented variable costs that would have been incurred by the
Company had a particular purchase not been made.  Such costs include, but are not limited to,
those associated with fuel, start-up, shut-down or any purchases that would
have been made in lieu of the purchase made.


 


f.                                         Under the Mid-Continent Area Power Pool
(MAPP) Agreement, Company is required to own, or have available to it under
contract, sufficient generating capability to supply its monthly adjusted net
system demand while maintaining a reserve capacity obligation equal to 15% of
the annual adjusted net system demand. 
If Company does not own sufficient generating capacity to meet this
obligation, Company will obtain seasonal capacity commitments from other
utilities which are party to the Agreement. 
If such capacity is not available, Company will obtain needed capacity
from an outside party.  The MAPP
Agreement also requires Company to meet a daily operating reserve obligation
equal to a prorated share of the Pool Total Operating Reserve which is an
amount equal to 150% of the capability of the largest generating unit in
operation on the interconnected systems of the Pool participants.  Additionally, the MAPP operating reserve
requirements states that the spinning reserve portion of the operating reserve
shall not be less than 75% of the capability of the largest generating unit in
service.  Company’s percentage of Total
Operating Reserve is calculated by giving one-third weight to the capability of
the Company’s largest unit divided by the sum of capability of each participant’s
largest unit and a two-thirds weight to the Company’s Annual System Demand
divided by the sum of the Annual System Demands of all participants.  If it is determined that Company cannot, in
any hour of the day, meet its load and operating reserve requirements with
Company generating resources, owned or under contract, then arrangements will
be made to purchase energy from within MAPP to meet such needs.  If sufficient resources are not available
from within MAPP, Company will arrange a purchase from a party outside of the
Pool.  Purchase will be considered a
reliability purchase if required to meet the conditions outlined above.


 


	
  Date Filed: May 16,
  2005

  	
  Effective Date:
  May 15, 2006

  
	
   

  	
   

  
	
  By:

  	
  /s/ James P. Maher

  	
   

  
	
   

  	
   James P.
  Maher, Manager – Regulatory Pricing, Iowa & Minnesota

  
	
   

  	
   

  
	
  Docket
  No. E001/GR-05-748

  	
  Order Date:
  May 19, 2006

  
				



 


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